Business World

Tuesday 21 November 2017

ISEQ bounces back as Merkel signals Greek solution

MARKETS

John Mulligan

John Mulligan

At last. That's no doubt what was going through the minds of investors across Europe after Germany's Chancellor Angela Merkel finally said she'd work closely with the European Central Bank to engineer a debt plan for Greece as the country drifted toward anarchy and a potential default threatened to undermine the foundations of the Eurozone.

Markets had fallen earlier in the day before Ms Merkel, at a press conference with French President Nicholas Sarkozy, said that a so-called "Vienna Initiative" provided a basis for dealing with Greece's financial woes.

The plan, used in eastern Europe during 2009, saw creditors roll over their sovereign bond investments as they fell due. The euro also strengthened against the dollar on news that a route map may now be in place within the next couple of months.

The ISEQ Overall Index headed for the weekend 0.76pc, or 21.74 points stronger, at 2,886.63, but still leaving it down for the week.

The main gainers yesterday included mining firm Kenmare Resources. It added 8.4pc to close at 54.2c, even as the International Monetary Fund warned that the situation in Greece threatened global financial stability.

Other notable risers included food group Glanbia, which added 3.73pc to end the session at €5.

Fallers included Independent News & Media, which shed almost 7.5pc to 53.2c; and recruitment business CPL Resources, which yielded 3.57pc to close at €2.70.

National benchmark indices rose in all but one of the western European markets trading yesterday. France's CAC 40 Index and Germany's DAX Index each climbed 0.8pc and the UK's FTSE-100 Index rose 0.3pc.

Greece's ASE Index surged 3.8pc, the largest gain of any of the western European markets open yesterday. National Bank of Greece, the country's largest lender, jumped 8.5pc to €4.75, while EFG Eurobank Ergasias soared 9.3pc to €3.17. Alpha Bank rallied 6.4pc to €3.32.

In the US, the Conference Board's gauge of leading indicators, which measures the outlook for the next three to six months, rose 0.8pc.

Irish Independent

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